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Title: |
Exclusive Custom Manufacturing Agreement |
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Entities: |
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Date: |
2005 |
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Size: |
Preview shows 7KB of 28KB total |
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Price: |
$38 |
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ID: |
#1032681 |
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EXCLUSIVE
CUSTOM MANUFACTURING AGREEMENT
This Exclusive Custom Manufacturing Agreement ("Agreement") is made
effective this _____ day of January, 2005, by and between [REDACTED -
CONFIDENTIAL TREATMENT REQUESTED]* ("Contractor") and Pacifichealth
Laboratories, a Delaware corporation with its principal offices at 100 Matawan
Road, Suite 420, Matawan, NJ 07747-3913 ("PHL").
1. PRODUCTS. This Agreement is for the processing, manufacturing, and packaging
on an exclusive basis of nutritional supplements and other items, as more
particularly identified in Exhibit A ("Products") by PHL, according to the
formulas, specifications and procedures set forth in Exhibit B, as such
formulas, specifications and procedures may be amended from time to time by PHL
(the "Specifications"). Products may be added to Exhibit A by the mutual
agreement of the parties. Products shall be distributed by PHL under labels,
trademarks and trade names designated by PHL.
2. TERM; TERMINATION. This Agreement shall be effective as of the date first
written above and shall continue for a period of one (1) year without
interruption, and thereafter shall continue year to year thereafter unless
terminated by either party on ninety (90) days written notice to the other
party. This Agreement may be terminated by either party at any time during the
term and any extension thereof for a material breach of this Agreement by the
other party, such termination to be effective immediately upon delivery to the
defaulting party specifying the nature of such breach and defaulting party's
failure to remedy the breach within ten (10) days of its receipt.
3. PRICES. Products shall be purchased from Contractor at the prices set forth
in Exhibit A, as the same may be modified annually by the mutual agreement of
the parties. In the event the parties are unable to agree on a proposed revision
of the price for a particular Product, then the price of such Product shall be
extended and such
1
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CONFIDENTIAL
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Product may be removed from this Agreement by PHL pursuant to paragraph 1 or by
Contractor upon at least sixty (60) days advance written notice to PHL.
4. PURCHASE ORDER,PRODUCT SCHEDULEING. Contractor agrees to sell, and PHL agrees
to purchase the quantity specified in each Purchase Order. It is agreed that a
variation of plus or minus ten (10%) from the Purchase Order quantity may be
invoiced and will be accepted by PHL based upon the actual production run
amount. Lead times are approximately six (6) weeks from receipt of a complete
Purchase Order to date of shipment and will be no greater than eight (8) weeks;
however, lead times may drop to four (4) weeks for emergency shipments or during
periods of high demand. PHL may notify or cancel an unproduced but scheduled
Purchase Order at any time up to ten (10) days prior to scheduled production
date without incurring additional charges. In the event Contractor is unable to
certify that it will produce the requirements of a Purchase Order with a lead
time of eight (8) weeks or less, PHL may have the requirements under such
Purchaser Order manufactured elsewhere. Should PHL cancel or delay any Purchase
Order accepted by Contractor, then PHL is responsible for any and all "special
ingredients" (i.e. ingredients or packaging used exclusively in PHL products)
purchased by Supplier for the production of a canceled or delayed Purchase
Order, provided such special ingredients cannot be used by Contractor to fulfill
other Purchase Orders placed by PHL. If PHL does not place other Purchase Orders
that would give Contractor the opportunity to use such special ingredients
within a reasonable time then Contractor shall, at PHL's option and expense,
dispose of special ingredients or ship the special ingredients as requested by
PHL. . Purchase orders will be placed in quantities not less than 8,000 lbs. per
formulation (blend).
5. PAYMENT TERMS. [REDACTED - CONFIDENTIAL TREATMENT REQUESTED]* PHL shall pay
invoices within [REDACTED - CONFIDENTIAL TREATMENT REQUESTED]* days after bill
of lading date.
6. QUANTITY. Contractor shall process, manufacture, accurately weigh, package,
palletize, warehouse and load PHL Products and supply quantities of Products
specified by PHL on dates as PHL shall direct. All finished product shall at all
times be kept free and clear from all encumbrances.
7. PHL TO FURNISH. (a) Packaging Materials: PHL shall provide labels and coupons
necessary for packing Products covered by the Agreement. PHL shall deliver, or
cause to be delivered, only such quantities of these items as are mutually
agreed upon by the parties, based upon Contractor's storage capacity and PHL's
product needs. (b) Art Work and Design: PHL, at its expense, agrees to provide
art work, printing plates and design work which is necessary to produce labeling
components for Products during the term of this Agreement. PHL shall furnish and
Contractor shall use PHL's batch or date codes, which codes shall be printed or
embossed on all packages of the Products in accordance with PHL's standard
practice. (c) Equipment: PHL may furnish certain items of equipment, to be
mutually agreed upon by the parties, for use by Contractor in the manufacture of
Products. Said items of equipment supplied by PHL shall at all times be
designated and labeled as PHL's property, shall be used only for the manufacture
of PHL's Products and no other products, and shall be promptly returned to PHL
upon request. A list of the equipment provided by PHL is attached to this
Agreement as Exhibit C.
8. CONTRACTOR TO FURNISH. (a) Raw Materials: Contractor shall provide all raw
materials and packaging materials not covered in paragraph 7 necessary for the
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